Materials recycling facility (MRF) gate fees paid to local authorities have declined over the last few years, according to the Waste and Resources Action Programme’s (WRAP) Gate Fees Report 2013.

The sixth annual report, which compares gate fees found at facilities and local authorities across the UK with those in previous years, aims to ‘increase price transparency and improve efficiency in the waste management market’.

An MRF gate fee is a fee paid either by a local authority to a MRF operator for processing its dry recyclables, or a fee paid to a local authority by a MRF operator for the dry recyclables. The exact arrangements differ between local authorities, depending on the nature of their contract.

Report findings

Providing an updated summary of charges for a range of alternative waste treatment, recovery and disposal options across the UK, the report found that although the median MRF gate fee paid by local authorities in 2012/13 was £9 per tonne (unchanged from the 2011/12 report), councils are seeing a 'marked decline' in the amount paid to them for dry recyclables than last year. Indeed, the report claims that although councils were receiving an average of £26 per tonne for dry recyclables for contracts signed in 2011/12, those signed in 2012/13 could only be worth £7 per tonne.

According to WRAP, the range of charges (-£40 to £82 per tonne) indicates ‘substantial’ variation both across and within regions for a variety of reasons, including: value of materials, contract length, the quality and range of materials accepted, the size and age of the MRF, the collection system and the degree of local market competition.

Director of Market Economics at WRAP, Steve Creed, explained: “WRAP’s gate fees report provides a simple, accessible resource for the waste industry and local authorities. It is regarded as a respected source of information that helps organisations to make better informed decisions regarding the cost of waste management options open to them. Take MRF gate fees for example; while the median gate fee is £9 per tonne we know that around 40 per cent of the local authorities surveyed receive income from MRFs for their dry recyclables rather than paying gate fees.

“This market has seen some volatility recently. Based on a small sample of 10 contracts struck in 2012 [receiving a median income of £7 per tonne] it seems that there has been a reduction in what some MRFs are paying local authorities for dry recyclates in the last year, due to a range of factors including lower materials prices compared to 2011."

Creed added that despite the fact that the MRF gate fees paid by local authorities held steady over the last two years, the "big picture trend over the last few years indicates a decline in MRF gate fees paid by local authorities partly as competition has increased".

Other key findings identified by the report include:

• The median OAW (open-air windrow composting) gate fee has fallen ‘marginally’ since last year to £24 per tonne;
• The ‘most significant’ change in IVC (in-vessel composting) gate fees has been the decrease in charges for food waste, which are down from £49 to £39 per tonne;
• The median gate fee for treatment of food waste at AD (anaerobic digestion) facilities has remained unchanged at £41 per tonne;
• The median gate fee charged to local authorities for the onward management of Household Waste and Recycling Centres (HWRC) has risen ‘marginally’ since last year;
• The median gate fee for landfilling non-hazardous waste has remained unchanged, but the annual increase in landfill tax has meant that overall the cost of landfilling has increased by £8 per tonne;
• With the rise in landfill tax the median gate fees paid at energy-from-waste (EfW) or Mechanical Biological Treatment (MBT) facilities are now cheaper than landfill; and
• The range in gate fees for landfilling the three hazardous materials considered (soil and stones containing dangerous substances, and insulation or construction materials containing asbestos) are ‘broadly’ similar to those presented last year.

Read WRAP’s Gate Fees Report 2013.